Hamlin School Business Model

Shaan shares details about a profitable private elementary school business model in San Francisco.

"I discovered a business that does $31 million in revenue locally here in San Francisco. On that $31 million in revenue, it does about $11 million in profit and has $100 million of assets on the balance sheet. It's called the Hamlin School - a private girls-only school for K through 8 with only 450 kids.

Parents pay $40,000 a year to send their kid to kindergarten or first grade. They have a waitlist and a hardcore admissions process. If you want your kindergartner to get into school, you have to dress up, go to the interview, prep them. Your 4-year-old does an interview with them.

They own the buildings and real estate they operate out of, which is why they have so much value in assets on the balance sheet. They have 75 teachers for the 450 kids. They also get donations - low 7 figures. They did a 'we're going to renovate the school' campaign and raised $50 million, and that's donations outside of the tuition.

You can see who goes there because they have to list who donates - Facebook executives, famous authors, movie producers. It's a very successful business model in San Francisco because the public school system is considered not very good."